HISTORY OF NEO-CLASSICAL, CAPITALISM, SOCIALISM, KEYNESIAN ECONOMIC THOUGHT

Abstract

In the history of economic thought, there have been several major approaches that have influenced the development of the world economy. Neo-classical emerged as a continuation of classical theory, which emphasized the role of free markets and competition in regulating the economy.that emphasized the role of free markets and competition in regulating the economy. Capitalism, which is based on neo-classical ideas, makes private ownership and free markets the main pillars, enabling significant economic growth. as the main pillars, allowing for significant economic growth, but also creating inequality. creates inequality. Socialism, on the other hand, emphasizes collective ownership of resources and more equitable distribution. It aims to address the inequalities that arise under capitalism. However, socialist practices vary and often involve a mix of market and planning elements. of markets and planning. Keynesianism emerged as a reaction to the Great Depression and focuses on the role of the role of government in regulating the economy through fiscal and monetary policy to achieve economic stability. This theory provides the basis for government intervention in response to recession and address economic instability. In conclusion, neo-classical economic thought, capitalism, socialism, and Keynesianism have all had a significant impact on the development of the world economic system. economic system. An understanding of this diversity of views helps us to detail different approaches in organizing the economy and addressing the problems that arise. It is important to continue to study and understand the role of each of these approaches in the context of global economic development. context of global economic development.